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2020-1778 RESOLUTION No. 2020-1778 RESOLUTION AUTHORIZING THE ISSUANCE OF $27,280,000 IN GENERAL OBLIGATION PROMISSORY NOTES FOR FINANCING VARIOUS PUBLIC PURPOSES AND $3,640,000 IN GENERAL OBLIGATION COMMUNITY DEVELOPMENT BONDS TO PROVIDE FINANCIAL ASSISTANCE FOR COMMUNITY DEVELOPMENT WHEREAS, Section 67.12(12) Wis. Stats., authorizes any Wisconsin municipality to issue promissory notes as evidence of indebtedness for any public purpose as defined in Section 67.04(1)(b), Wis. Stats., and for general and current municipal expenses, including interest thereon; and WHEREAS, pursuant to Section 67.04(4), Wis. Stats., the legislature finds that contracting of debt under Chapter 67, Wis. Stats., for any project constitutes a public purpose; and WHEREAS, the following public projects and purposes fall under the scope of Section 67.04(1)(b) and 67.12(12), Wis. Stats.: $6,394,000 to construct and improve streets; $119,000 to construct and improve storm sewers; $3,558,000 to acquire, improve, and maintain parks and public grounds; $3,046,000 to acquire, improve, and maintain public buildings and grounds; $2,726,000 to acquire capital equipment; $3,625,000 to construct and close landfills; $1,326,000 to extend and improve the waterworks system; $1,881,000 to extend and improve the sanitary sewer system; and $4,605,000 to refund prior notes of the City; and WHEREAS, Section 67.05 Wis. Stats., authorizes any Wisconsin municipality to issue bonds as evidence of indebtedness for any public purpose as defined in Section 67.04(1)(b), Wis. Stats., and for general and current municipal expenses, including interest thereon; and WHEREAS, pursuant to Section 67.04(4), Wis. Stats., the legislature finds that contracting of debt under Chapter 67, Wis. Stats., for any project constitutes a public purpose; and WHEREAS, the following public projects and purposes fall under the scope of Section 67.04(1)(b) and 67.05, Wis. Stats.: $3,640,000 to provide financial assistance for community development; and WHEREAS, such above proposed public projects and purposes and the issuance of such promissory notes and community development bonds will be beneficial to the City and in the best interest of the community; 1 NOW, THEREFORE, Be It Resolved by the City Council for the City of Janesville that: 1. The City of Janesville may, pursuant to Section 67.12(12) Wis. Stats., issue up to twenty-seven million, two hundred and eighty thousand dollars ($27,280,000) in non-taxable municipal promissory notes to finance various public projects and purposes as follows: $6,394,000 to construct and improve streets; $119,000 to construct and improve storm sewers; $3,558,000 to acquire, improve, and maintain parks and public grounds; $3,046,000 to acquire, improve, and maintain public buildings and grounds; $2,726,000 to acquire capital equipment; $3,625,000 to construct and close landfills; $1,326,000 to extend and improve the waterworks system; $1,881,000 to extend and improve the sanitary sewer system; and $4,605,000 to refund prior notes of the City. 2. Each promissory note so issued, plus interest, shall be repaid within ten (10) years after the original date of the note pursuant to Section 67.12(12), Wis. Stats. 3 The City of Janesville may, pursuant to Section 67.05 Wis. Stats., issue up to three million, six hundred and forty thousand dollars ($3,640,000) in taxable municipal community development bonds to finance various public projects and purposes as follows: $3,640,000 to provide financial assistance for community development. 4. Each community development bond so issued, plus interest, shall be repaid within twenty (20) years after the original date of the bond pursuant to Section 67.05, Wis. Stats. 5. The City Clerk is authorized to publish a Notice to Electors pursuant to Section 67.05(7)(b), Wis. Stats. 6. Each such promissory note and community development bond issued shall constitute an indebtedness of the City of Janesville. 7. The purpose of this section of this resolution is to satisfy the "Official Intent Requirement" of Treasury Regulations Section 1.150-2. (a) The City has determined to undertake the following categories of capital improvements and to expend funds for each such category of capital improvement in the estimated amount set forth opposite each capital improvement in the following table: 2 Category of Capital Improvement Estimated Expenditure Construct and improve streets $1,096,000 Construct and improve storm sewers $67,000 Acquire, improve, and maintain parks and public grounds $2,043,000 Acquire, improve, and maintain public buildings and grounds $554,000 Acquire capital equipment $1,186,000 Construct and close landfills $593,000 Extend and improve the waterworks system $648,000 Extend and improve the sanitary sewer system $1,584,000 Provide financial assistance for community development $3,300,000 (b) The City reasonably expects to be reimbursed for such expenditures with proceeds of its debt. The maximum principal amount of debt expected to be issued for the reimbursement of such expenditures is $11,071,000. (c) This declaration of official intent is consistent with the budgetary and financial circumstances of the City. (d) A copy of this resolution shall be filed immediately in the office of the City Clerk and shall be made available for public inspection in the manner required by law. (e) This resolution shall be operative and effective upon its passage. 3 ADOPTED: May 26, 2020 Motion by: Conley Second by: Wolfe APPROVED: Councilmember Aye Nay Pass Absent BensonX CoonleyleyX Farrell X Mark A. Fre. ag, City Manager Johnson X Marklein X ATTEST: Williams X Wolfe X Derrek eise, Deputy Clerk-Treasurer APPROVED AS TO FORM: eigiv/W Wald Klimczyk, City Attorney Proposed by: City Manager Prepared by: Kevin Barney, Bond Counsel 4